New Exchange Rates As Naira Depreciates Against US Dollar

• The Nigerian currency has depreciated against the United States dollar in the official foreign exchange market
• The new exchange rate figures released by the CBN shows that the dollar lost for the second day consecutively
• In the five days of trading there were wins and losses for the naira against the US dollar other currencies

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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira depreciated slightly against the United States dollar in the official market to close the week on the negative.

Data from the CBN showed that the naira at the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,532 against the US dollar on Friday, July 11.

Tuesday's exchange rate is a 0.06% or N1 depreciation for the naira when compared to the previous day's closing rate of N1,531 recorded in the official market.

For the week, the naira started at N1,529.5 against the US dollar and ended at N1,532, which indicates a marginal depreciation of N2.5 or 0.16%.

The naira, however, appreciated against the pound sterling in the official market, closing at N2,066.31/£1 on Friday, marking a N3.98 gain from N2,070.29/£1 on Thursday.

While against the euro, it weakened by N5.31 to sell at N1,788.57/€1, compared to the previous day’s N1,783.26/€1.

Week-on-week, the naira strengthened by N20.78 against the pound sterling, improving from N2,087.09/£1 last Friday to N2,066.31/£1 this Friday.

However, it depreciated by N12.22 against the euro, sliding from N1,776.35/€1 to N1,788.57/€1 over the same period.

Naira improves against dollar at black market

In the parallel market, also known as the black market, it was a different story for the naira against the US dollar.

Traders who spoke to Legit.ng confirmed that the dollar appreciated against the Nigerian currency.

"We are buying at N1,530 and selling at N1,543 today. Pound is going for between N2,120 and N2,140, while euro trades between N1,775 and N1,790."

Snapshot of naira rates in official market

Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.

• CFA: N2.72
• Yuan/Renminbi: N213.43
• Danish Krone: N239.73
• Euro: N1,788.57
• Japanese Yen: N10.39
• Saudi Riyal: N408.01
• South African Rand: N85.35
• Swiss Franc: N1,920.51
• Pound Sterling: N2,066.31

BDC operators accuse banks of not selling dollars

Earlier, Legit.ng reported BDC traders have accused commercial banks of not selling dollars to them despite directives from the CBN.

The traders believe that the lack of forex available to them is one of the reasons the naira will struggle to maintain stability.

In recent days, the naira has reversed its gains against the US dollar in the foreign exchange markets.